Econ 211 quiz 4 answers

Econ 211 quiz 4 answers - Econ 211 Quiz 4 Patrick...

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Quiz 4 Patrick McLaughlin Quiz 4: Choose the one alternative that best completes the statement or answers the question. There is only one correct answer for each question. There are 8 questions total. 1) The figure above shows the costs and demand curves for the Bigshow Cable Company. The capture theory of regulation predicts that the regulated price of Bigshow Cable Company would be set at 5) _______ A) $4. B) $2. C) $8. D) $6. 2) The fact that our demand for clean air increases as our income increases suggest that clean air is A) a substitution good. B) a normal good. C) a complement with outside activities. D) an inferior good. E) none of the above 3) If there is an inefficient use of resources in a competitive market because of an externality, then A) market failure exists and government intervention might lead to an efficient use of resources. B) public goods should not be produced. C) the free-rider problem is nonexistent.
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This note was uploaded on 04/24/2008 for the course ECON 211 taught by Professor Johnson during the Spring '07 term at Clemson.

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Econ 211 quiz 4 answers - Econ 211 Quiz 4 Patrick...

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